Propensity Score-Matching Methods For Nonexperimental Causal StudiesRajeev Dehejia () and Sadek Wahba The Review of Economics and Statistics, 2002, vol. 84, issue 1, pages 151-161 Abstract: This paper considers causal inference and sample selection bias in nonexperimental settings in which (i) few units in the nonexperimental comparison group are comparable to the treatment units, and (ii) selecting a subset of comparison units similar to the treatment units is difficult because units must be compared across a high-dimensional set of pretreatment characteristics. We discuss the use of propensity score-matching methods, and implement them using data from the National Supported Work experiment. Following LaLonde (1986), we pair the experimental treated units with nonexperimental comparison units from the CPS and PSID, and compare the estimates of the treatment effect obtained using our methods to the benchmark results from the experiment. For both comparison groups, we show that the methods succeed in focusing attention on the small subset of the comparison units comparable to the treated units and, hence, in alleviating the bias due to systematic differences between the treated and comparison units. © 2001 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog Downloads: (external link) Related works: Ordering information: This journal article can be ordered from Access Statistics for this article The Review of Economics and Statistics is edited by Daron Acemoglu, George J. Borjas, Dani Rodrik and Julio J. Rotemberg More articles in The Review of Economics and Statistics from MIT Press |
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